IT Firm Mindtree announced that it would acquire Larsen and Toubro’s (L&T) NxT Digital Business for Rs 198 crore. The move comes after Mindtree’s efforts to increase its presence in India’s growing IT sector.
According to a regulatory filing, the deal in its entirety, would include Rs 198 crore and all earnouts, subjected to terms of the Business Transfer Agreement.
The acquisition would allow Mindtree to leverage NxT Digital Business’ expertise to capture a significant portion of the IoT and Industry 4.0 space. It will also allow Mindtree to offer holistic solutions and cross-sell to existing clientiele as well as new prospects, boosting its digital capabilities and strengths and emerge as a ‘go-to business transformation partner’.
NxT Digital Business is Larsen and Toubro’s in-house startup focusing on the company’s digital capabilities. It has played a crucial role in transforming L&T’s operations. Numerous assets and factories were digitalised and made IoT-friendly to accomodate data-driven objective decision making.
By applying revolutionary technologies like industrial IoT, artificial intelligence, virtual reality, machine learning and cyberspace security, NxT has been able to streamline L&T operations. Rhis has resulted in much more efficient business solutions and outcomes for its global customers.
S N Subrahmanyan, CEO and MD, L&T, said that the arrangement would enable NxT Digital Business and Mindtree to combine their efforts to present a holistic solution that meets the client requirements. “There is a huge opportunity ahead as global manufacturers and industrial companoes are increasingly adopting Industry 4.0 focussed smart solutions, systems and processes,” he added.
Commenting on the development, Mindtree’s CEO and MD Debashis Chatterjee said, “Industrial and manufacturing companies are starting to adopt digital technologies across the value chain, but need a partner with the expertise to strategically connect the dots and generate business value from their data.” He went on to say that the acquisition of NxT Digital Business would add to Mindtree’s expertise in customer handling and allow it to become a leading partner for its clients.